Your home is one of the biggest investments you’ll ever make—so protecting it with the right homeowners insurance is critical. But with so many options out there, how do you know what makes a “good” policy?
At Eugene C. Yates Insurance Agency, we’ve been guiding Sacramento homeowners since 1946. In this post, we’ll break down the key things to look for when choosing the best home insurance for your needs and budget.
✅ 1. Understand What a Good Policy Covers
A solid homeowners insurance policy will offer a balanced mix of property coverage, personal protection, and liability insurance. The most common policy type is an HO-3, which covers:
- Dwelling – Repairs or rebuilds your home if it’s damaged by covered risks like fire or wind.
- Other Structures – Covers detached garages, fences, and sheds.
- Personal Property – Protects your belongings (furniture, electronics, clothing).
- Liability Protection – Helps if someone is injured on your property and you’re found liable.
- Loss of Use – Pays for temporary living expenses if your home becomes uninhabitable due to a covered event.
💡 Want enhanced protection? Ask about HO-5 policies, which offer more comprehensive coverage for both home and personal property.
✅ 2. Make Sure the Coverage Amounts Are Right
A good policy should reflect the cost to rebuild your home, not just its market value.
Ask your agent about:
- Replacement cost coverage (not actual cash value, which subtracts depreciation)
- Extended or guaranteed replacement cost (especially in areas with fluctuating construction prices, like California)
You should also review your personal property coverage limits—especially if you own high-value items like jewelry, art, or electronics.
✅ 3. Know What’s Not Covered
Even great home insurance has its limits. Most standard policies don’t cover:
- Flood damage
- Earthquakes
- Sewer backup
- Normal wear and tear
- Pest or mold problems
If you live in a high-risk area (like a flood zone or near a fault line), you may need separate flood or earthquake coverage.
📍 In Sacramento, wildfire and flood risks are real concerns—make sure your policy is built for the region you live in.
✅ 4. Research the Insurance Company
Not all insurance companies are created equal. Look for one that has:
- Strong financial ratings (A.M. Best, Moody’s)
- Great customer service and claims reputation
- Experience in your region, especially with California-specific risks
You want a company that will be there when you need them most—and one that won’t make filing a claim difficult.
✅ 5. Compare Quotes Wisely
Price matters, but don’t base your decision on the cheapest premium alone. Consider:
- Deductibles (higher deductibles mean lower premiums, but more out-of-pocket costs)
- Coverage limits and exclusions
- Available discounts (bundling, safety features, loyalty programs)
🛡️ A good agent will help you compare apples to apples, so you know exactly what you’re getting for the price.
✅ 6. Work With an Independent Insurance Agent
One of the best ways to find a great policy? Partner with an independent insurance agency.
At Eugene C. Yates Insurance Agency, we:
- Work with multiple top-rated carriers
- Offer custom quotes tailored to your home and budget
- Provide local knowledge about Sacramento’s unique risks
- Help you uncover hidden discounts and coverage gaps
Final Thoughts
A good homeowners insurance policy gives you more than peace of mind—it gives you financial protection when life takes an unexpected turn. Whether you’re buying your first home or reviewing your current coverage, take the time to make an informed decision.
Let us help you make the smart choice.
🏠 Get Expert Help From Sacramento’s Trusted Insurance Agency
Need help finding the perfect policy for your home?
📞 Call Eugene C. Yates Insurance Agency today to speak with a licensed agent
💻 Or get a free online quote in just minutes
Eugene C. Yates Insurance Agency
Protecting Sacramento homeowners since 1946
Affordable. Dependable. Local.